Ross v. Bridgewater Construction, Inc., Unpublished Decision (11-21-2003)
Ross v. Bridgewater Construction, Inc., Unpublished Decision (11-21-2003)
Opinion of the Court
{¶ 2} Appellant Bridgewater Construction, Inc. ("Bridgewater") sets forth the following assignment of error:
{¶ 3} "The trial court erred, as a matter of law, by affirming the arbitrator's decision where the arbitrator exceeded his authority."
{¶ 4} The facts that are relevant to the issues raised on appeal are as follows. In March 2001, appellees John and Susan Ross entered into a contract with Bridgewater for the construction of a home. A contract was drawn up and was signed on March 17, 2001, by the president of Bridgewater but not by the Rosses. Construction began shortly thereafter, but numerous disagreements arose between the parties due to the Rosses' dissatisfaction with much of the work being done. Construction continued, however, despite those disputes.
{¶ 5} On November 13, 2001, the Rosses filed a request for arbitration with the American Arbitration Association ("AAA"). Bridgewater was informed of the request and was told that the arbitration would be conducted under the Fast Track Procedures of the AAA. Bridgewater filed an objection to the arbitration with the AAA but the objection was overruled and the matter proceeded to arbitration. On June 19, 2002, the arbitrator found that Bridgewater had breached its agreement with the Rosses and issued an award in the amount of $77,914.93 in favor of the Rosses.
{¶ 6} On June 27, 2002, Bridgewater filed a motion to vacate and/or modify the arbitration award pursuant to R.C.
{¶ 7} The reviewable issues before us, then, are whether a valid and enforceable written agreement allowing for arbitration of disputes existed between the parties and whether the amount of the arbitrator's award was within the authority granted by the rules of the AAA.
{¶ 8} Appellant contends first, as it did in the trial court, that this matter was not subject to arbitration because there was no signed agreement. Bridgewater also again argues that even if there was a valid agreement to arbitrate, the arbitrator exceeded his powers by issuing an award in excess of the $75,000 limit set forth in the AAA's fast track procedures.
{¶ 9} The parties offered into evidence the building contract which had been submitted at arbitration to determine which party was in breach.
{¶ 10} Appellate review of an arbitration is limited to an evaluation of the order issued by the trial court. Brumm v. McDonald Co. Securities, Inc. (1992),
{¶ 11} Ohio courts have addressed this issue and have held that an arbitration clause in a contract is enforceable regardless of whether the party seeking to compel arbitration signed the agreement. Brumm v. McDonald Co. Securities, Inc., supra. As noted in Brumm, an agreement to submit to arbitration must be in writing in order for it to be enforceable under R.C. 2711. Id. at 102. Brumm further noted, however, that R.C.
{¶ 12} The elements necessary for a valid contract under Ohio law are well-established. "To be valid, there must be, inter alia, a lawful subject matter, a meeting of the minds of the parties and an actual agreement to do the thing proposed in the agreement from which the contract emerges. To be binding, the parties to the contract must have a common and distinct intention communicated by each party to the other. * * *" Bradley v. Farmers New World Life Ins. Co. (1996),
{¶ 13} Appellant also argues that the arbitrator exceeded his authority by awarding an amount in excess of $75,000, which is the limit for claims administered under the Fast Track Procedures of the AAA. The record indicates, however, that at the arbitration hearing counsel for Bridgewater agreed that the builder should pay the Rosses $3,887.93 for certain
{¶ 14} repairs to the kitchen ceiling that the Rosses had paid someone else to make. The arbitrator's award included that amount but noted that Bridgewater had agreed earlier to pay the sum. The trial court found that it was the arbitrator's intent to order Bridgewater to pay according to its prior agreement and that the $3,887.93 was not a contested issue. The trial court further found that the amount of the repairs should be subtracted from the total award, which would bring the amount of the award within the $75,000 Fast Track limit. Upon consideration thereof, this court finds that the trial court did not err by finding that, after deducting the amount Bridgewater had already agreed to pay the Rosses, the arbitration award was within the amount permitted by the Fast Track Procedures.
{¶ 15} Based on the foregoing, this court finds that the trial court did not err by confirming the June 19, 2002 order of the arbitrator in all respects. Accordingly, appellant's sole assignment of error is found not well taken.
{¶ 16} On consideration whereof, the judgment of the Lucas County Court of Common Pleas is affirmed. Costs of this appeal are assessed to appellant.
Reference
- Full Case Name
- In the Matter of the Arbitration Between John T. Ross and Susan Ross v. Bridgewater Construction, Inc.
- Cited By
- 2 cases
- Status
- Unpublished